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Salesforce Q1 2025 Earnings Report (CRM)
- Earnings per share: $2.44 adjusted vs. $2.38 expected
- Revenue: US$ 9.13 billion against US$ 9.17 billion expected
Salesforce forecast current-quarter adjusted earnings per share of $2.34 to $2.36 on revenue of $9.2 billion to $9.25 billion. Analysts polled by LSEG expected $2.40 in adjusted earnings per share on $9.37 billion in revenue.
Revenue in the fiscal first quarter, ended April 30, rose 11% from $8.25 billion a year earlier, Salesforce said in a statement. declaration. It is the first time since 2006 that Salesforce has fallen short on revenue, according to LSEG data.
Salesforce saw budget scrutiny and longer-than-usual business cycles during the quarter, president and chief operating officer Brian Millham told analysts on a conference call. Management implemented go-to-market changes that reduced reserves, Millham said.
All five of Salesforce’s product areas contributed to the growth. But revenue in the Professional and Other Services category, at $548 million, was down 9% and under StreetAccount consensus at $572.9 million.
Net income jumped to $1.53 billion, or $1.56 per share, from $199 million, or 20 cents per share a year ago.
Salesforce raised its earnings forecast for fiscal 2025. The company now expects adjusted earnings of $9.86 to $9.94 per share, compared with $9.68 to $9.76 a share ago. three months. Its revenue guidance remains between $37.7 billion and $38 billion. Analysts surveyed by LSEG expected US$9.76 in adjusted earnings per share and US$38.08 billion in revenue.
During the quarter, Salesforce began selling its Copilot Einstein assistant sales and customer service representatives. The company also he said All paid Slack customers gained access to artificial intelligence features like conversation summaries and daily recaps.
Before the after-hours change, Salesforce shares were up 3.5% so far this year, trailing the S&P 500 index, which was up about 11% over the same period. A drop of this magnitude on Thursday would mark Salesforce’s worst day on the market since the 2008 financial crisis.
Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.
—CNBC’s Robert Hum contributed to this report.
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